Etu Energias strikes $260 million deal with Chevron for Angola’s deepwater block duo

Etu Energias, a privately owned Angolan energy company, has taken steps to increase its stakes in two offshore blocks from Cabinda Gulf Oil Company (CABGOC), a subsidiary of U.S.-headquartered energy giant Chevron, through a deal that will make it the largest interest holder in one of Angola’s longest-producing deepwater assets and could see it take over operatorship of one of these blocks.

Etu Energias has signed a sale and purchase agreement (SPA) with Chevron’s Angolan subsidiary to acquire a 31% working interest (WI) in Block 14 and a 15.5% WI in Block 14K offshore Cabinda for a base consideration of $260 million in cash, with an economic effective date of January 1, 2026. In addition, contingent payments of up to $25 million per annum, capped at $250 million in aggregate, may become payable up until 2038 in relation to the potential future PKBB development, contingent on both realized oil prices and production being over certain thresholds.

The agreement follows the firm’s exercise of pre-emption rights as an existing partner in both licenses after Chevron inked a deal to sell the stakes in the two blocks to Energean. With a current 29% WI in Block 14 and a 14.5% WI in Block 14K, Etu Energias emphasizes that it will become the largest interest holder in one of Angola’s longest-established deepwater producing assets and intends to assume the role of the operator on Block 14, subject to regulatory approval.

The acquisition, which is supported by a framework agreement with BW Energy and Chariot, will be funded by a debt facility provided by Shell Western Supply and Trading. The transaction is said to mark a strategic entry into a new core area for BW Energy, aligned with the company’s West Africa growth strategy.

Carl K. Arnet, CEO of BW Energy, said: “The framework agreement is an important step towards establishing BW Energy in Angola, one of West Africa’s premier deepwater provinces. Once completed, this is expected to deliver production and cash flow with identified upsides. Block 14 is a high-quality asset with a long production history and several proven undeveloped discoveries, which BW Energy sees strong potential to put into production.

“Angola offers a deep inventory of proven discoveries that can benefit from focused development and repurposed infrastructure. We look forward to working with Etu and Chariot on what we see as a strong and complementary partnership, and to further develop our position in Angola over time.”

The transaction is expected to complete in early 2027, subject to customary conditions including approval by the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG), other regulatory entities and the receipt of required third-party consents.

The current gross production is approximately 42,000 barrels of oil per day (bopd), of which approximately 13,000 bopd is net to the interests being acquired; gross producing reserves of 93 million barrels (bbls), of which approximately 29 million bbls are attributable to the interests being acquired.

The company underlines that there is material identified upside from the development of nearby reservoirs suitable for tie-back to existing infrastructure, from production optimization, and potential operating cost efficiencies associated with the transition of operatorship.

Edson R. dos Santos, Chairman and Chief Executive Officer of Etu Energias, commented: “This transaction is a very important milestone in the development of Etu Energias as an Angolan company with a global vision. It’s about more than production and reserves; it’s about building enduring capabilities in Angola and developing deepwater operating expertise that can create value for many years to come.

“Block 14 has been producing for more than a quarter of a century and we believe it still holds significant value. We have an in-depth knowledge of these assets, having been a partner on the licenses for many years, and believe that we can unlock further value from them for the benefit of Etu Energias, our partners and the economy of Angola going forward.”

Block 14K is operated by Trident Energy and is not affected by the change of operatorship in Block 14, which is a producing deepwater license offshore Cabinda in water depths of 200 to 1,600 meters that has produced more than 900 million barrels of high-quality, Brent-linked crude since first oil in 1999, with production peaking at approximately 200,000 bopd.

Production comes from nine fields developed through the Benguela Belize Lobito Tomboco and Tombua-Landana (BBLT) hub facilities, supported by active waterflooding and well intervention programs. Abandonment obligations for Block 14 are fully funded through existing escrow provisions.

Block 14K contains the Lianzi field, a cross-border unitized development between Angola and the Republic of Congo, tied back to Block 14 infrastructure. Current gross production is approximately 42,000 bopd, of which 95% is from Block 14 and 5% from Block 14K.

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